13 June 2007

FT: TSE looks at listing on rival overseas bourse

The Tokyo Stock Exchange is considering bypassing Japan and listing itself on an overseas bourse as part of radical plans to boost the country's image as a global financial centre, according to one of its senior executives.

The TSE last week named banking advisers for an initial public offering that is expected to take place in 2009 and which analysts forecast could raise nearly $4bn.

It had been assumed the Tokyo bourse would be the natural choice for the listing, however senior TSE officials are discussing whether to opt for a primary listing in New York, London or elsewhere in Asia, and eschew Japan altogether. The TSE could also opt for a primary domestic listing, with a secondary offering overseas.

In an interview with the Financial Times, Toshitsugu Shimizu, the TSE executive director responsible for international strategy, said: 'We are discussing whether the primary listing of the TSE should be overseas. All options are on the table. We have ruled nothing out.'

Any decision to bypass Tokyo would face stiff political hurdles. However, it is understood that the TSE believes a primary overseas listing would send a powerful signal of Japan's ambition to become a leading global financial centre.

Tokyo is the world's second-largest stock market but has lost ground in recent years to Hong Kong and Singapore as Asia's leading financial centre.

The TSE is expected to make a decision on where to list in the next few months.

Mr Shimizu also signalled his frustration with the multiplicity of stock exchanges in Japan. 'We have six stock exchanges in this tiny country alone, which must look ugly to outsiders,' he said.

Mr Shimizu said the TSE was in talks with several international exchanges about forming strategic alliances, but a decision was likely to be months away.

© Financial Times